The National Bank of Ukraine moves ahead with FX liberalization through the relaxation of temporary administrative restrictions provided that this move will not destabilize the FX market. Today, the NBU Board decided to expand the opportunities for banks to perform their own FX operations in the interbank market.

To this end, the NBU  allows banks to increase the amount of net FX purchases made within one business day from 0.5% to 1.0% of the bank’s regulatory capital.

“This move will broaden the  opportunities for banks to manage their FX position, enabling the NBU to scale  down its operations in the FX market  and enhancing the ability of the market to find the equilibrium exchange rate,”  explained NBU Governor  Dmytro Sologub speaking at the press briefing on monetary policy.

NBU Deputy Governor Oleg Churiy said that this move would enable banks to increase the maximum limit on net FX purchases in the interbank market from the current USD 22 million to USD 44 million per day.

The NBU specified the rules governing FX purchases by residents to conduct  FX settlements under import contracts without goods and services being imported into Ukraine. From now on, resident customers are allowed to purchase foreign currency to pay not only for products  for personal consumption but also for products to be used on the basis of contracts.

These measures are approved  by  NBU Board  Resolution No 74 of 3 August 2017 On Amendments to Some NBU Regulations. The amendments shall come into force from 4 August 2017.